On January 1, 2017, Holland Corporation paid $9 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland's outstanding voting stock, representing a 60 percent ownership interest. The remaining 40,000 shares of Zeeland continued to trade in the market close to its recent average of $8.00 per share both before and after the acquisition by Holland Zeeland's acquisition date balance sheet follows Current assets Property and equipment (net) Patents 15,600 Liabilities 329,600 Common stock 210,800 Retained earnings- 556,000 $236, 000 100,000 220,000 $556,000 On January 1, 2017, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $51,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $419,900. Zeeland's acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeeland's acquisition-date fair value over its book value was attributed to goodwill The companies' financial statements for the year ending December 31, 2018, follow: Holland $(594,300 (444,500) Zeeland Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings 301,300 74,500 15,600 58, 400 44,286 208,000 32,400 19,400 58,700 Separate company net income $ (188,786) (126,000) Retained earnings 1/1 Net income Dividends declared $ (821,800 (339,700) (126,000) (188,786) 50,000 30.000 Retained earnings 12/31 $ (960,586 (435,700) $ 126,600 97,500 Current assets Investment in Zeeland Property and equipment (net) Patents 606,792 853,000 152.200 275,000 167.500 Total assets $ 1,738,592 540,000 Liabilities Common stock- Holland Common stockZeeland Retained earnings 12/31 $ (458,006 (4,300) (100,000) $ (1,738,592 (540,000) (320,000) 960,586 435,700 Total liabilities and owners equity On January 1, 2017, Holland Corporation paid $9 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland's outstanding voting stock, representing a 60 percent ownership interest. The remaining 40,000 shares of Zeeland continued to trade in the market close to its recent average of $8.00 per share both before and after the acquisition by Holland Zeeland's acquisition date balance sheet follows Current assets Property and equipment (net) Patents 15,600 Liabilities 329,600 Common stock 210,800 Retained earnings- 556,000 $236, 000 100,000 220,000 $556,000 On January 1, 2017, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $51,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $419,900. Zeeland's acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeeland's acquisition-date fair value over its book value was attributed to goodwill The companies' financial statements for the year ending December 31, 2018, follow: Holland $(594,300 (444,500) Zeeland Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings 301,300 74,500 15,600 58, 400 44,286 208,000 32,400 19,400 58,700 Separate company net income $ (188,786) (126,000) Retained earnings 1/1 Net income Dividends declared $ (821,800 (339,700) (126,000) (188,786) 50,000 30.000 Retained earnings 12/31 $ (960,586 (435,700) $ 126,600 97,500 Current assets Investment in Zeeland Property and equipment (net) Patents 606,792 853,000 152.200 275,000 167.500 Total assets $ 1,738,592 540,000 Liabilities Common stock- Holland Common stockZeeland Retained earnings 12/31 $ (458,006 (4,300) (100,000) $ (1,738,592 (540,000) (320,000) 960,586 435,700 Total liabilities and owners equity